Freddie Mac stands for the Federal Home Loan Mortgage Corporation or FHLMC. It is a federal controlled organization designed to support the secondary mortgage market. It was originally chartered by Congress to increase the supply of funds that mortgage lenders, banks, mortgage brokers, credit unions and savings and loans to consumers to make home purchases. Freddie Mac was started in 1970, and is a business that buys mortgages from lenders and packages the mortgages into securities and then sells the securities to Wall Street. The proceeds of the sale of the securities is used to issue more loans.
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Showing posts with label mortgage backed securities. Show all posts
Showing posts with label mortgage backed securities. Show all posts
Tuesday, June 3, 2008
Friday, March 14, 2008
Bear Stearns bailout causes Stocks to Tank
Bear Stearns which is one of the biggest financial services company has received interim financing from the Federal Reserve Bank of New York to help boost liquidity. The share price of Bear Sterns stock plunged over $23 a share to $33.78.
Bear said it was talking with JPMorgan Chase about permanent financing and other solutions. I think that this should raise an eyebrow as to the liquidity of other banks that were heavily into mortgage back securities. Hopefully we are nearing the end of the subprime loan issues.
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Bear said it was talking with JPMorgan Chase about permanent financing and other solutions. I think that this should raise an eyebrow as to the liquidity of other banks that were heavily into mortgage back securities. Hopefully we are nearing the end of the subprime loan issues.
Additional Articles on GetPrequalified.com
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